How to Buy Bitcoin with PayPal vs Skril: Which is Better?

The process of buying cryptocurrencies has seen a drastic development since Bitcoin’s debut in 2009. This transformation has been largely fueled by technological advancements, regulatory changes, and growing mainstream adoption.

During its early days, i.e., 2009 to 2013, the only modes of acquiring the digital currency were direct mining or Peer-to-Peer transactions on forums like Bitcointalk. However, this was very cumbersome and limited to those with technical expertise.

Later, in 2010, Mt. Gox came, which allowed users to buy BTC with fiat currencies by establishing a marketplace for trading. But, as wonderful as it was, such platforms were plagued with security issues. In 2014, when Mt.Gox lost 850,000 Bitcoins in an infamous hack, it eventually collapsed in the same year.

But as the industry matured, more reliable exchanges like Coinbase and Binance came to the scene, which tried to address the security concerns of users. Moreover, these platforms had a user-friendly interface and multiple payment options, including credit cards and bank transfers.

More recently, institutional entities and payment processors have also entered the digital currency trading markets, which has further democratized access to cryptocurrencies.

Talking specifically about PayPal and Skrill, PayPal began offering cryptocurrency-related services in 2020, where it allowed users to buy, sell, and hold Bitcoin, Ethereum, Litecoin, etc. But many people are quite unaware of the fact that Skrill (part of the UK-based Paysafe Group) already debuted its crypto services much earlier, in mid-2018.

The special thing about such institutional payment processors is the lowered barrier for users to buy digital currencies without having to understand and navigate through the complex exchanges or manage private keys by themselves.

Both of these digital wallets are prominent names, commanding a user base in that counts in multi-millions. Their straightforward user experience and support for multiple currencies make them even more accessible. But beneath the superficial similarities, there are some important differences in fees, transaction speed, security, and withdrawal options between those wallets.

In this guide, we will talk specifically about buying Bitcoin with PayPal vs. Skrill. Is PayPal good for buying Bitcoin? Or, Is Skrill better than PayPal for Bitcoin? Or, vice-versa?

This comprehension will serve as your ultimate guide and give you an idea of how to choose a Bitcoin payment method between those two, and decide which method best suits your specific needs. Now, without any further ado, let the showdown begin!

PayPal and Skrill: Know Your CryptoCurrency Payment Gateways

Well, in a general sense, PayPal and Skrill are digital wallet services that allow online monetary transactions. But they also offer crypto-related services, including Bitcoin.

Let’s first know more about these platforms as cryptocurrency payment gateways.

PayPal

Paypal is a global payment giant founded back in 1998. It has a user base of over 400 million users across 200+ countries.

If you look at the price history of Bitcoin from July 2019 to October 2020, the constant price trend has a sudden surge. When PayPal launched its cryptocurrency payment gateways, the price of BTC surged past $13,000.

Furthermore, in January 2021, PayPal recorded over $240 million in cryptocurrency trading volumes, and that too in a volatile trading session.

A key feature of PayPal is that it allows users to use their cryptocurrency holdings for payments. When a user selects crypto as a payment method, PayPal converts the crypto to the receiving party's preferred fiat currency at the point of sale.

Also, users can transfer their crypto holdings to external wallets, but certain fees must be paid.

Moreover, PayPal’s crypto-related services are limited to the United States, the United Kingdom, and Luxembourg. While PayPal remains adamant about exploring possible avenues for expansion, the prospects are currently quite limited.

Skrill

Skrill is a digital wallet that was founded in Europe and is popular among online gamblers, forex traders, and even for international remittances. However, it started cryptocurrency trading in 2018, 2 years earlier than PayPal.

Today, Skrill allows its users to buy, sell, and hold 40+ cryptocurrencies, most notably Bitcoin, Ethereum, and Litecoin. And, since it is regulated by the Financial Conduct Authority (FCA) and the Central Bank of Ireland, it makes it a reliable option for secure Bitcoin transactions.

Contrary to PayPal, Skrill does not enable its users to use their crypto holdings for payments to merchants or commodities, as Skrill is more about trading and encouraging investment within the platform. However, users can opt for Skrill prepaid cards to make direct payments.

Skrill has a strong presence in European markets, it also serves as a funding method on exchanges like Bitpanda, eToro, and Paxful for users seeking withdrawals outside the region. Also, Skrill’s cryptocurrency payment gateways are available in more than 70 countries.

How to Buy Bitcoin with PayPal and Skrill

The process of buying Bitcoin through PayPal or Skrill follows a fairly straightforward method. Here’s a step-by-step guide for buying Bitcoin via PayPal and Skrill:

Step-by-Step Method On How To Buy Bitcoin with PayPal:

1. Log in to your PayPal account via the app (preferred) or website.
2. Go to the Crypto section that is located under the “Finances” tab.
3. There you can find the list of supported cryptocurrencies from which you can conveniently choose BTC
4. Specify the amount you would like to spend on buying Bitcoins. Note that the minimum amount is $1.
5. Confirm your payment by selecting a funding source such as a PayPal Balance, a Linked Bank Account, or a Credit/Debit card.
6. Confirm the transaction

The equivalent Bitcoin (as per the amount you spent on Step 4) is stored in your PayPal account, which can be used at your discretion.

Step-by-Step Method On How To Buy Bitcoin with Skrill:

1. Go to your Skrill account via the app or the website
2. Find the “Crypto” tab in the interface of Skrill
3. Select to buy Bitcoin
4. Enter the amount you are willing to spend on buying Bitcoins, in your local currency
5. Confirm the transaction using the Skrill Balance or Linked Payment Method

The digital coins are then conveniently deposited in your Skrill account, from where you can sell them back to fiat currencies or withdraw them to an external wallet.

Purchases via Third-Party Platforms

While both Bitcoin and Skrill provide a simple method of buying Bitcoin via their intuitive and customer-centric platforms, you might want to opt for some reputable third-party platforms in some cases.

For example, potential lower fees, more flexible payment methods, support for external wallets, regional availability, and other intriguing features. Moreover, third-party platforms such as crypto exchanges or even betting sites offer the best Bitcoin deposit bonus.

PayPal offers no such facility, while Skrill has some occasional cashbacks and promotional offers.

Platforms like eToro, Coinbase, and Binance are found to have seamlessly integrated PayPal into their system. But while eToro has no deposit fees, Coinbase imposes 4% for US users.

Talking about Skrill-supported platforms, the question has to be asked, “What’s the best site to buy BTC with Skrill?”, as one of the strong aspects of Skrill is its acceptability on multiple exchanges. Paybis, CEX.IO, and even BitValve are the top places you can go for instant Bitcoin purchases with Skrill.

That being said, if you are adamant about using a third-party platform, make sure to evaluate the security aspects, regulatory compliance with your country’s law, overall reliability, and customer support offered by those platforms.

PayPal Vs. Skrill: Bitcoin Purchase Comparison

Here’s a detailed breakdown of the bitcoin purchase comparison between PayPal and Skrill based on the fees involved.

On an irrelevant note, if you think PayPal is always coming before Skrill throughout this article, that is only an alphabetical consideration. Here’s a detailed breakdown of Skrill vs PayPal fees:

PayPal Fees

PayPal charges a tier-based fee for buying/selling cryptocurrencies, which is imposed on the total transaction cost.

Purchase or Sale Amount (in USD)	Fee (in USD)
$1 - $4.99	$0.49
$5 - $24.99	$0.99
$25 - $74.99	$1.99
$75 - $200	$2.49
$200.01 - $1000	1.80%
$1000.01+	1.50%

PayPal is often revered as a competitive cryptocurrency payment gateway for low-fee Bitcoin transactions, especially for large buys. But if you are having difficulty understanding the fee structure, here’s an example:

Suppose you are making a $200 worth of purchase for Bitcoin, then PayPal will take away a flat $2.49 their fees. If you are going for a higher purchase, say $1,000, then with a 1.80% levy on the total cost, the fees now become $18.

But, the answer to “Does PayPal charge fees for Bitcoin?”, does not end there. There is something called “Cryptocurrency Conversion Spread,” which is the difference between the price at which PayPal buys altcoins and the price it charges the users (embedded into the exchange rate).

The exact figures for the spread are not quantified and are usually known at the time of your pay checkout. So, you can consider it to be a hidden fee. And sadly, if you really want to buy Bitcoin with PayPal, this fee is often unavoidable.

Skrill Fees

The fees associated with buying Bitcoin on Skrill depend mostly on the payment method in question, i.e., account balance and credit/debit card usage.

The former incurs a 2.75% of the total transaction amount with a minimum fee of €1.50 per transaction. So, if you are purchasing $1,000 worth of altcoins such that it exceeds the minimum, then there will be a fee of $27.50.

The latter is a more expensive method as it also involves card processing costs. For that same $1,000 purchase, if you opt for a credit/debit card instead of your account balance, a 4% fee will be levied on the total transaction amount. So, the fees for a $1,000 purchase via a credit/debit card is $40.

Moreover, if your Skrill account is not in Euros, then you would need to convert your local currency to Euros first to buy Bitcoin with Skrill. This is an essential step and incurs a 1.5% fee on the total converted amount.

An interesting thing about Skrill, unlike PayPal, is the provision of an account status-based fee structure. The account statuses are Standard Skriller, Silver VIP, Gold, and Diamond VIP. And, Skrill offers reduced fees for users with the VIP status.

Account Type	Buy/Sell Fee
Standard Skriller	1.50%
Silver	1.40%
Gold	1.30%
Diamond	1.30%

Earning a “VIP” status on Skrill requires frequent use of the platform or meeting certain transaction limits within the designated period.

Factors Affecting Fees

Besides the obvious fees involved in the transaction process for both of these platforms, several factors can influence the cost of buying Bitcoin.

Currency Conversion

PayPal deals entirely in the USD for crypto transactions, while Skrill has an obvious leniency toward Euros. If a user’s local currency differs, there will be a currency conversion fee involved. As mentioned earlier, Skrill charges a 1.5% fee for currency conversion. But in the case of PayPal, it is less transparent as its conversion spread is included in the exchange rate itself.

Regulatory Changes

The world of crypto is ever evolving, so the regulations are also constantly changing globally. But a general thumb rule can be established. A strict regulation can lead to higher fees for both PayPal and Skrill, as both of them are regulated financial institutions, and stringent rules generally mean a higher operational cost.

Platform Policy Update

Both PayPal and Skrill have to respond to the market trends and user feedback. This fact does have precedents as PayPal reduced its fees for larger transactions, while Skrill introduced perks for VIP users. So, users should update themselves on any developments in the policy of the platforms, as there is potential for future adjustments.

Competition

The advent of crypto trading platforms such as Coinbase and Binance represents a strong threat to digital wallets like PayPal and Skrill. A competitive landscape could compel PayPal or Skrill to lower fees or provide additional benefits to their users in order to remain competitive.

Technological Developments

Blockchain technology is developing gradually along with payment processing. These technologies are vital for digital currency trading platforms, with the former having an indirect yet decisive effect while the latter has a more direct influence. Improvements in those technologies could reduce the operational cost of the platforms, which ultimately leads to lower fees.

Skrill vs. PayPal Transaction Speed

Beside fees, there is another aspect that is of a major concern among users, which is the transaction speed.

When comparing Skrill vs. PayPal transaction speed and to find the fastest Bitcoin purchase methods, the assessment has to be done in terms of buying crypto in terms of fiat and selling crypto for fiat.

Buying Crypto with Fiat

If you are wondering, “How do I buy Bitcoin instantly with PayPal?”, then the answer lies in how fast you can navigate to the “Crypto tab” on the PayPal app (or website). The process is instant by using a debit card.

As for Skrill, the answer is a little tricky. If your question is, “Can I buy Bitcoin with Skrill instantly?”, then the answer is yes, but only by using your Skrill account balance that has to be converted from your fiat currency which can be also described as an instantaneous process.

Selling Crypto For Fiat

In this area, PayPal again allows a no-delay transaction, converting the crypto to be sold instantly to USD and into the user’s balance. Likewise, selling on Skrill also involves converting the crypto to be sold into fiat and into the user’s Skrill balance. While the exact time for this process was not found to be explicitly mentioned anywhere, it can be safely assumed to be fast.

Both PayPal and Skrill offer an instantaneous mode of direct purchases. Of course, your account needs to be well-funded, first of all. But, it has to be mentioned that third-party exchanges such as Bitpanda and Paybis are slightly faster with Skrill, which can range from 5 to 20 minutes time range compared to PayPal’s 5 to 30 minutes time range.

Additional Considerations

Transfer Capabilities

PayPal has been allowing its users to transfer Bitcoin to external wallets since 2022. While the weekly limit is set at $25,000, this is an important advantage that PayPal has over Skrill.

On the other hand, Skrill does not have support for the same. Rather, it urges users to hold and invest the BTC within the platform. However, Skrill users can engage in Peer-To-Peer transactions of their crypto holdings within the platform.

Purchase and Withdrawal Limits

The purchase limit on PayPal is $100,000 per week, which is quite high, but the withdrawal limit is set at $10,000 per week. So, the buy-to-sell ratio is 10:1, which can be considered flexible.

As for Skrill, the exact purchase limits are lower than PayPal's. For instance, CEX.IO, which is a Skrill-friendly platform, has a daily deposit limit of $10,000.

Security

“Can I buy Bitcoin with PayPal safely?”, “Can I buy Bitcoin with Skrill safely?” If these questions haunt you, then here’s the good news. In case of security, both the platforms are well-regulated and support two-factor authentication and encryption features, ensuring secure Bitcoin transactions.

But, given PayPal’s long history of being in the transaction business might give better confidence to incoming users compared to Skrill.

Regional Availability

Buying Bitcoin with PayPal is limited to a few regions, primarily in the USA, UK, and Luxembourg, making it somewhat limited. In case of Skrill, it offers its crypto-related services in more than 80 countries. The annex section of this article provides a full list of the countries where PayPal and Skrill offer their BTC services.

Which Should You Choose?

Based on everything we discussed throughout this article, here’s a quick overview of which platform to use, based on the current amenities provided by PayPal and Skrill.

PayPal may be the better choice if:

1. The user is buying in large amounts,
2. The user wants to move their crypto assets to personal/external wallets,
3. The user is transacting internationally between the US, the UK, and Luxembourg.
4. The user is a high-volume buyer.

Skrill may be a better option if:

1. The user is already a Skrill member,
2. The user does not need to transfer their crypto holdings to any external wallet,
3. The user is of European nationality,
4. The user needs greater regional accessibility.

Conclusion

Throughout this comprehensive guide, we explored the intricacies of buying Bitcoin via PayPal and Skrill. PayPal is best for US-based beginners who are looking to invest in Bitcoin. Moreover, PayPal stands out as the superior platform for buying Bitcoin, and this fact is backed by its lower fees, support for external wallet transfer, and a higher transaction limit.

That being said, Skrill also remains a viable option, especially for users who are already using the platform or for users in the vicinity of Skrill-regions from where leverage can be used through the currency (Euro). The best approach, however, would be to use a hybrid strategy by using PayPal for quick, convenient, and small purchases and capitalizing on Skrill-funded exchanges (or self-custody wallets) for long-term holdings.

But, ultimately, the decision will remain with the user to compare Bitcoin payment methods. A better understanding of each platform’s strengths, limitations, and prospects is fundamental.